Comments on: Refinancing with a Second Mortgage? Patience, my Friend, patience. http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/ Seattle's Leading Resource for Real Estate Information Sat, 21 Nov 2009 06:01:18 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Rhonda Porter http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-343720 Rhonda Porter Mon, 09 Nov 2009 15:27:27 +0000 http://raincityguide.com/?p=5283#comment-343720 Good luck, Pankaj--here are a few things I would consider when looking a 5 yr FHA and/or conv ARM. 1) look at the caps. What if you're in the home for 6 or 7 years? Things don't always go as planned. FHA will most likely have better caps than conv: 1% max annual vs 5% (typical first adjustment cap for conv--may be other)... 2) FHA does have upfront mortgage insurance which is not refundable in cash however, if you do a streamline refi (which probably is not likely based on how low current rates are) a portion may be credited towards that refi. 3) FHA mortgages are assumable if the new borrower qualifies. This will be an asset depending on what your rate is and is probably more valuable for a fixed FHA vs an adjustable IMO. I do believe we'll see much higher rates in the future and those selling their homes with a fixed FHA low rate mortgage may have an advantage over those who need to get a higher rate loan on their own based on current rates. Do make sure your mortgage originator is approved to do FHA loans. Best! Good luck, Pankaj–here are a few things I would consider when looking a 5 yr FHA and/or conv ARM.

1) look at the caps. What if you’re in the home for 6 or 7 years? Things don’t always go as planned. FHA will most likely have better caps than conv: 1% max annual vs 5% (typical first adjustment cap for conv–may be other)…

2) FHA does have upfront mortgage insurance which is not refundable in cash however, if you do a streamline refi (which probably is not likely based on how low current rates are) a portion may be credited towards that refi.

3) FHA mortgages are assumable if the new borrower qualifies. This will be an asset depending on what your rate is and is probably more valuable for a fixed FHA vs an adjustable IMO. I do believe we’ll see much higher rates in the future and those selling their homes with a fixed FHA low rate mortgage may have an advantage over those who need to get a higher rate loan on their own based on current rates.

Do make sure your mortgage originator is approved to do FHA loans.

Best!

]]> By: Pankaj http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-343718 Pankaj Mon, 09 Nov 2009 04:38:29 +0000 http://raincityguide.com/?p=5283#comment-343718 Hi, I have decided for FHA because of more than 90% LTV and have decided for 5 yr ARM because I am sure that I won't be staying in this house for more than 5 yrs. In fact my mortgage broker is also trying to get me Conv 5 Yr ARM.... It is with underwriters.... will confirm how it goes. Thanx Hi,
I have decided for FHA because of more than 90% LTV and have decided for 5 yr ARM because I am sure that I won’t be staying in this house for more than 5 yrs.
In fact my mortgage broker is also trying to get me Conv 5 Yr ARM…. It is with underwriters…. will confirm how it goes.

Thanx

]]> By: Rhonda Porter http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-343599 Rhonda Porter Sun, 01 Nov 2009 20:05:25 +0000 http://raincityguide.com/?p=5283#comment-343599 I've had to make the same move for my clients. Why are you doing an ARM instead of a 30yr fixed FHA? (just out of curiousity) I’ve had to make the same move for my clients. Why are you doing an ARM instead of a 30yr fixed FHA? (just out of curiousity)

]]> By: Pankaj http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-343598 Pankaj Sun, 01 Nov 2009 19:57:04 +0000 http://raincityguide.com/?p=5283#comment-343598 Thanx Rhonda, For now, I am trying 1 FHA loan (5 Yr ARM) for both 1st and 2nd mortgage. I am hoping that I am making the right decision of moving with FHA loan and not Conventional. Any suggestion on this, please. Regds Thanx Rhonda,
For now, I am trying 1 FHA loan (5 Yr ARM) for both 1st and 2nd mortgage.
I am hoping that I am making the right decision of moving with FHA loan and not Conventional.
Any suggestion on this, please.

Regds

]]> By: Rhonda Porter http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-343561 Rhonda Porter Fri, 30 Oct 2009 00:40:44 +0000 http://raincityguide.com/?p=5283#comment-343561 Zina, that's pretty stinky of BOA if I understand you correctly, they're willing to do the refi if they're in first lien position--however if you stick with the lender of your choice, they will not subordinate. I bet we'll be seeing more of this. It's up to BOA (any second lien holder) whether or not they're going to refi. Zina, that’s pretty stinky of BOA if I understand you correctly, they’re willing to do the refi if they’re in first lien position–however if you stick with the lender of your choice, they will not subordinate.

I bet we’ll be seeing more of this.

It’s up to BOA (any second lien holder) whether or not they’re going to refi.

]]> By: Rhonda Porter http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-343560 Rhonda Porter Fri, 30 Oct 2009 00:37:03 +0000 http://raincityguide.com/?p=5283#comment-343560 Pankaj, any luck with Chase? You would think that with two mortgages, they would be more apt to do the subordination or at least offer to consolidate both. Your mortgage originator can try calling Chase to see when/if the mortgage will be subordinated. 90% may be tough. Pankaj, any luck with Chase? You would think that with two mortgages, they would be more apt to do the subordination or at least offer to consolidate both. Your mortgage originator can try calling Chase to see when/if the mortgage will be subordinated. 90% may be tough.

]]> By: Zina http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-343556 Zina Fri, 30 Oct 2009 00:00:46 +0000 http://raincityguide.com/?p=5283#comment-343556 Hi, we just had a situation with subordination(almost rhyme). we want refinance and Amerisave send subordination papers to a Bank Of America where we have home equity loan. BOFA return papers with a stipulation to move to a first position. Amerisave obviously refusing as they are going to refinance first mortgage and investing much more money. is there anything we can do? thanks a lot for a reply. Hi,
we just had a situation with subordination(almost rhyme).
we want refinance and Amerisave send subordination papers to a Bank Of America where we have home equity loan. BOFA return papers with a stipulation to move to a first position.
Amerisave obviously refusing as they are going to refinance first mortgage and investing much more money.
is there anything we can do?

thanks a lot for a reply.

]]> By: Pankaj http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-343303 Pankaj Tue, 06 Oct 2009 18:28:37 +0000 http://raincityguide.com/?p=5283#comment-343303 Hi, Is this 2 months waiting for subordination with Chase is still going on. I have 1st and 2nd mortgage with Chase and can only get 1st mortgage refinance because CLTV is around 90%. Any comments. Thanx Hi,
Is this 2 months waiting for subordination with Chase is still going on.
I have 1st and 2nd mortgage with Chase and can only get 1st mortgage refinance because CLTV is around 90%.
Any comments.

Thanx

]]> By: Rhonda Porter http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-340882 Rhonda Porter Mon, 22 Jun 2009 21:47:20 +0000 http://raincityguide.com/?p=5283#comment-340882 <p>Often times the bank who is being subordinated will complete the form however, the escrow company may be able to do this for you with escrow instructions. Someone authorized at Key Bank will have to sign the Subordination Agreement which will be recorded simultaneously with the new deed of trust (aka mortgage).</p> Often times the bank who is being subordinated will complete the form however, the escrow company may be able to do this for you with escrow instructions. Someone authorized at Key Bank will have to sign the Subordination Agreement which will be recorded simultaneously with the new deed of trust (aka mortgage).

]]> By: John Horner http://raincityguide.com/2009/02/26/refinancing-with-a-second-mortgage-patience-my-friend-patience/#comment-340708 John Horner Wed, 17 Jun 2009 17:09:53 +0000 http://raincityguide.com/?p=5283#comment-340708 I am trying to get a refi closed from Chase, started in Jan 2009; locked in a rate and began the slow process. I have a HELOC at Key bank for my business, they have agreed to sign a subordination agreement. The problem is both banks are saying that the other is supposed to come up with the document to be signed. Who should prepare the document to be signed at closing? I thought this process would be much simpler being both banks agreed to the subordination, in the mean time I am waiting in the bleacher seats for a resolution!!!! Any info would be appreciated, I am trying to get a refi closed from Chase, started in Jan 2009; locked in a rate and began the slow process.
I have a HELOC at Key bank for my business, they have agreed to sign a subordination agreement. The problem is both banks are saying that the other is supposed to come up with the document to be signed. Who should prepare the document to be signed at closing? I thought this process would be much simpler being both banks agreed to the subordination, in the mean time I am waiting in the bleacher seats for a resolution!!!!
Any info would be appreciated,

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